Describing the Customers' Perception of Unilever's Dualithic Approach

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Describing the Customers' Perception of Unilever's Dualithic Approach Describing the Customers’ Perception of Unilever’s Dualithic Approach has had on its Sub-Brands’ Brand Equity Student Name: Jayd Twiddy Student Number: 13022033 Vega School of Brand Leadership Supervisor: Sharon Ballack Alec Bozas Course: BA Honours in Strategic Brand Communication Module Name: Research Methodology Module Code: RESM8419 Due Date: 16 October 2017 DECLARATION I, Jayd Lynne Twiddy declare that this dissertation is of my own original work. Any secondary research material that has been used throughout this dissertation is peer reviewed, either a print source or from the Internet. I understand plagiarism is the use of another person’s work, ideas, and words without appropriate acknowledgement and I am aware of the department’s policy in this regard. All sources are acknowledged and referenced using the required Harvard reference style. Student Number: 13 02 20 33 Date: 16 October 2017 ______________________ Signed: J.L Twiddy II ACKNOWLEDGEMENTS I would like to say a special thanks to the following people who made this research paper possible: Sharon Ballack (Supervisor), your knowledge and passion for the subject truly guided me through every stage of this research paper. I would not have been able to do this dissertation without you. Alec Bozas (Supervisor), your dedication and support as a lecturer, ensured I was always on track and prepared for any situation. III GLOSSARY OF TERMS Brand Equity: Brand equity is viewed as the inherent or perceived value of a brand, which depends on the customer's’ interaction over time with the brand and the perception consumers build based on their positive or negative experiences. Brand equity depends on the brand being trusted, which results in loyalty and as a consequence a brand image is created. This gives a brand either strong or weak brand equity (Study.com, 2017). Brand Image: A brand image is a perception held by an individual, that is created through either positive or negative experiences with a brand. Ideally a brand image is what resides in the minds of consumers, what a brand stands for and what it promises (MSG, 2017). Brand Loyalty: Brand loyalty is the commitment of repurchasing a preferred brand and recommending it to others (Study.com, 2017). Brand Relationship Spectrum: The brand relationship spectrum is an organisational tool used to evaluate how each sub-brand relates to the parent-brand. There are four main structures an organisation can follow, which ultimately determines the strategic structure and operations for the entire organisation (Klopper, 2014, p.124). Dualithic Structure: An organisational structure where the parent-brand endorses each sub-brand. Each sub-brand hold its own visual identity and market share. However, the endorsement allows the parent-brand’s brand equity to be transferred to the sub-brands, impacting the purchasing decisions (Klopper, 2014, p.129). FMCG Products: Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are frequently purchased essential or non-essential goods. Such as packaged foods, beverages, toiletries, home cleaning products, etc. (Business Dictionary, 2017) Parent-Brand: A parent-brand is a separate brand that houses or manufactures a number of individual sub-brands. It is purposely created to stand alone and be independent from the sub-brands within the portfolio. It is often unseen (Distility, 2011). Multilithic Structure: An organisational structure where the parent-brand has not influential associations with its sub-brands. Each sub-brand holds its own visual identity and stands independent to the parent-brand (Klopper, 2014, p.136). Sub-Brand: A sub-brand is a product or service that is related to a parent brand (owner/manufacture), but has its own brand name and identity (Troy, 2010). IV ABSTRACT This was a small-scale qualitative research study, which analysed the impact an organisational strategy and structural shift has had on both the parent-brand and its sub- brands’ brand image, brand loyalty and brand equity elements as perceived by consumers. Unilever is a world-wide Fast Moving Consumer Goods (FMCG) organisation that has recently shifted its strategy shift, from a silent parent-brand to an endorsed parent-brand. The aim of this study was to analyse the general consumer’s perception towards both parent-brand and sub-brand, in relation to Unilever’s brand strategy shift from a Mulitilithic Approach to a Dualithic Approach. While determining whether the shift has had a positive influence on both parent and sub brands; thus encouraging other Fast Moving Consumer Goods (FMCG) organisations, such as Pioneer Foods, Tiger Brands, etc. to implement and shift towards the same strategy. Information was gathered through 15 face-to-face interviews, and emails with general consumers within the greater Durban area. Due to the descriptive qualitative nature of the study, the samples were not generalised to the total population, but rather develop an in- depth study of the main phenomenon. The insights provided by the study lead to meaningful key findings. It was clear that participants were aware of many parent-brands within the South African Market, however many were unable to identify the products of each parent-brand. The participants purchase particular FMCG products based on their perception of value (quality vs price), however these products can be seen as price dependent. It was also determined that products and/or brands that communicate elements of be environmentally friendly, transparent and accountable, this can impact the participants purchasing decisions. From the key findings, recommendations for Unilever and other FMCG organisations within the South African market were made. V TABLE OF CONTENTS Pages DECLARATION II ACKNOWLEDGEMENTS III GLOSSARY OF TERMS IV ABSTRACT V TABLE OF CONTENTS VI LIST OF FIGURES X LIST OF TABLES X CHAPTER ONE: INTRODUCTION AND OVERVIEW OF THE RESEARCH 0 1.1 INTRODUCTION AND BACKGROUND OF STUDY 0 1.2 RATIONALE 1 1.3 PROBLEM STATEMENT 1 1.4 PURPOSE STATEMENT 2 1.5 RESEARCH OBJECTIVES 3 1.6 RESEARCH QUESTIONS 3 1.6.1 Main Research Question 3 1.6.2 Sub-Questions 3 1.7 SCOPE OF STUDY 3 1.8 CHAPTER OUTLINE 4 1.9 SUMMARY 4 CHAPTER TWO: LITERATURE REVIEW 5 2.1 INTRODUCTION 5 2.2 UNILEVER: STRATEGIC RESPONSE TO SUSTAINABLE DEVELOPMENT 5 2.3 BRAND IDENTITY & BRAND BUILDING 7 2.3.1 Aaker’s Brand Identity 7 2.3.2 Brand Building 8 VI 2.4 BRAND RELATIONSHIP SPECTRUM 8 2.4.1 The Four Main Strategies 10 2.4.2 Unilever’s Brand Relationship Spectrum Shift 10 2.5 BRAND EQUITY 13 2.5.1 Keller’s Customer-Based Brand Equity Model 14 2.5.2 Impact of Endorsements on Brand Equity 15 2.6 CONSUMER BEHAVIOURS & BUYING DECISION PROCESS 17 2.6.1 Consumer Behaviours 17 2.6.2 Consumer Buying Decision Process 18 2.7 MEANINGFUL BRANDS 20 2.8 CONCLUSION 21 CHAPTER THREE: RESEARCH METHODOLOGY 22 3.1 INTRODUCTION 22 3.2 RESEARCH PARADIGM 22 3.3 RESEARCH METHODOLOGY 23 3.4 RESEARCH DESIGN AND APPROACH 24 3.5 TARGET POPULATION 25 3.6 SAMPLING METHODS AND SAMPLE SIZE 26 3.6.1 Sample Method 26 3.6.2 Sample Size 27 3.7 DATA COLLECTION METHODS 27 3.7.1 Interview Schedule 27 3.7.2 Focus Group 28 3.7.3 Interview Schedule Construction 28 3.7.4 Pilot Study 29 3.8 DATA ANALYSIS METHOD 29 3.9 VALIDITY AND RELIABILITY 30 3.10 TRUSTWORTHINESS AND CREDIBILITY 30 3.10.1 Credibility 30 VII 3.10.2 Transferability 30 3.10.3 Dependability 31 3.10.4 Confirmability 31 3.11 ETHICAL CONSIDERATIONS 31 3.12 ANTICIPATED CONTRIBUTION 32 3.13 DELIMITATION 33 3.14 SUMMARY 33 CHAPTER FOUR: PRESENTATION AND DISCUSSION OF THE FINDINGS 34 4.1 INTRODUCTION 34 4.3 PRESENTATION AND DISCUSSION OF FINDINGS 35 4.3.1 General Information of Interviewees 36 4.3.2 Results and Discussion of General Consumers 36 4.4 TRUSTWORTHINESS AND CREDIBILITY OF THE FINDINGS 48 4.5 CONCLUDING REMARKS 48 CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS 49 5.1 INTRODUCTION 49 5.2 OBJECTIVE ONE 50 5.2.1 Findings from Literature 50 5.2.2 Findings from Primary Research 50 5.2.3 Conclusion 51 5.2.4 Recommendations 51 5.3 OBJECTIVE TWO 52 5.3.1 Findings from Literature 52 5.3.2 Findings from Primary Research 52 5.3.3 Conclusion 53 5.3.4 Recommendations 53 5.4 OBJECTIVE THREE 53 5.4.1 Findings from Literature 53 5.4.2 Findings from Primary Research 55 5.4.3 Conclusion 55 5.4.4 Recommendations 55 VIII 5.5 OBJECTIVE FOUR 55 5.5.1 Findings from Literature 55 5.5.2 Findings from Primary Research 56 5.5.3 Conclusion 56 5.5.4 Recommendations 55 5.6 SUGGESTIONS FOR FURTHER RESEARCH 56 5.7 CONCLUDING REMARKS 56 REFERENCE 57 APPENDIX A: BRAND CONNECTIONS 65 APPENDIX B: UNILEVER CAMPAIGN 66 APPENDIX C: COCA-COLA’S ‘ONE BRAND’ STRATEGY SHIFT 66 APPENDIX D: UNILEVER PRODUCT LOGO’S 68 APPENDIX E: INTERVIEW QUESTIONS 69 APPENDIX F: CONSENT FORM 73 APPENDIX G: ETHICAL CLEARANCE 74 IX LIST OF FIGURES Pages Figure 2.1: Redesigned Unilever Logo 7 Figure 2.2: Brand Relationship Spectrum Structure 10 Figure 2.3: Brand Relationship Structure Strategy Shift 12 Figure 2.4: Brand Relationship Structure Token Endorsement 13 Figure 2.5: Keller’s Customer-Based Brand Equity Model 15 Figure 2.6: Model of Consumer Behaviour 19 Figure 2.7: Model of Buying Decision Process 19 Figure 4.1: Demographics of Respondents 37 Figure 4.2: Word Cloud of the Respondents favourite FMCG Products 38 Figure 4.3: Word Cloud of the Common Findings to why Respondents are Loyalty to Particular FMCG Products 39 Figure 4.4: Respondents Knowledge of Unilever’s Sub-Brands 42 Figure 4.5: Word Cloud of the Common Findings to why the Respondents Loyalty Would or Would Not Be Affected by knowing the Manufacture
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